Celsius Coal: Coking & Thermal Coal Projects – Oct. 2012 (PDF)Celsius Coal claims to have secured high quality thermal and coking coal deposits in Kyrgyzstan (principally the Uzgen Basin), with other potential acquisitions under consideration. An Exploration Target1 of 501 to 700 Mt has been defined for the Uzgen Basin Projects based on historical exploration’ (principally Soviet era mapping, trenching and 30,000m drilling). Immediate drilling of Tuyuk-Kargasha, Kokkia and Min Teke to resource status in accordance with JORC code (initial resources estimated by early 2013). Initial coal quality analysis shows Celsius has potentially intersected hard coking coal. If subsequent laboratory test work confirms these results Celsius can be regarded as best in class for coal quality. Mining commenced at Min Teke and immediate mine start-up for Sary Mogol is expected. The Kyrgyzstan coal projects are in close proximity to the proposed Trans-Asia Railway, China and other potential end users, as well as located in a country with strong and growing domestic demand.

The company had drilled seven diamond holes at the prospect, five of which were immediate twins of former Soviet era drillholes, being located within 5 metres and 50 metres. Another was drilled 125 metres from an existing hole while the last was an exploration hole that showed the coal seams continued to the northeast of the licence area.

Laboratory results showed that 15 of the 16 coal samples had Free Swelling Index (FSI) levels greater than 4.5, which is typically assessed as the threshold for coking coal. Most samples from DD12TK003 show FSI in the range of 6.5-8.5 indicating coking coals could be higher quality coking coal and are consistent with results from DD12TK001 that were reported in October this year. The tests also show a continuing trend of low phosphorous and sulphur.

Celsius noted that given the distance between the two drillholes, it is likely that a substantial portion of the coal at Tuyuk-Kargasha is coking coal.

Testing is currently underway on drill core samples from five other diamond drill cores.

Celsius has also maintained its Exploration Target of 501 to 700 million tonnes of coal with significant coking coal potential for the Uzgen Basin Projects. At Min Teke, Celsius has focused its drilling on delineating a coal resource that could be utilised to supply the local domestic thermal market. Two easterly drillholes intersected cumulative coal thicknesses of 11.62 metres and 12.54 metres. The company also mined 7,500 tonnes of coal from Min Teke to fulfil the obligations under its Development/Mining License. This coal will be sold into the local Kyrgyzstan domestic market and should generate a small cash flow which will further fund the company’s exploration programmes. Celsius also plans to mine 5,000 tonnes of coal from the Sary Mogol mining lease by the end of 2012.

Celsius Coal (ASX: CLA) is an Australia-based exploration company focused on exploring and developing coking and thermal coal deposits in Kyrgyzstan. Last October, it completed the acquisition of an 80% interest in three prospective coal tenements located in the Uzgen Coal basin in Kyrgyzstan (Tuyuk-Kargasha, Kokkia and Min-Teke). The interest is held via Kokkia’s 100% ownership of two Kyrgyzstan entities, Panj-Sher Ank Ltd and Baidamar Ltd, which together hold the Tenements. As consideration, the company has now allotted and issued 500,000,000 fully paid ordinary shares and 900,000,000 Performance Shares pro-rata to the shareholders of Kokkia by way of part consideration for the acquisition.

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